Franco-Belgian bank Dexia to extend into Southeastern Europe

Tuesday, May 3, 2005

The Franco-Belgian bank Dexia has stated that it intends to extend into Southeastern Europe, especially Romania, Bulgaria, and Turkey. Axel Miller, Dexia's operations director, said the bank is interested in taking over some banking units in these countries in order to develop its network.

Dexia already has a subsidiary in Slovakia, which will be used as a base for further extension in the region. The Franco-Belgian bank has already organised a team of experts who work in Poland to submit a request for a banking license in Romania.

Bulgaria and Romania signed their Accession Treaties for the European Union in April 25, and are set to join the EU in January 1, 2007. This, along with economic factors, such as a more liberal fiscal policy in Romania, have given rise to a sharp increase in foreign investment in the past few years. Turkey, which is a European Union candidate country but which has not yet started accession negotiations, has recently opened up to foreign investment due to its stabilising economy and well as its large market.